AXA's 2009 Federal Budget update

Key highlights

The 2009/10 Federal Budget is characterised by a $57.6 billion deficit, with the Government expecting to see the budget return to a surplus position in 2015/16. The focus of spending is on infrastructure and building projects in an effort to limit the increase in unemployment (tipped to reach 8.5 per cent in 2010/11) and to ‘build for the future’.

From a financial planning perspective, the impact of the Budget is not as great as those we have seen in the last few years.

While there were no significant tax changes announced, it is important to note that the tax cuts announced in last year’s Budget have been not been wound back.

Concessional contribution caps will be halved from 1 July 2009, but the widely-rumoured changes to transition to retirement income streams did not eventuate. The 50 per cent reduction in minimum drawdowns for account-based pensions will continue for the next financial year.

The co-contribution matching rate is reduced from 150 per cent to 100 per cent for three years, but there is no change to the eligibility requirements.

One of the more significant changes for retirees is to the income testing of pensions, with the income test to increase from 40 cents in the dollar to 50 cents in the dollar. The impact of this change is reduced by the increases in the pension rates and transitional provisions to minimise the impact on existing pensioners.

Join us online for the AXA 2009 Federal Budget update – Thursday 14 May 2009 – Mark it in your diary now!

How you can participate

Simply go to www.axa.com.au/federalbudget on Thursday 14 May 2009 to hear AXA’s 2009 Federal Budget update and join in our live online forum.  Save this link to your favourites for easy access on Thursday, there is no need to register.

Join our live forums on Thursday 14 May

Webcast agenda

Viewing the Budget Update

All you need to do is click on 'play' at the bottom of the video.  You can view the videos at any time, however the live online forum will only run at the published times.